>> well by 2014. the properties that are be required for the construction of 16 wells and finally we need to complete water supply agreements with our project partners. we are now evaluating that project schedule and we will be be able to provide an update with updated schedule forecast as part of the q 2 quarterly update. now i will walk you through some of our project, starting with the calavera project,

we've skaeftd -- excavated over -- in our last meeting we briefed some unanticipated geology conditions that were encountered on the left side of the valley on the spill way. since our last update we have issued a $7.4 million lateral order to keep the contractor working on that side of the valley and to prevent us from accumulating any major delays on the project. we anticipate getting a proposal from the contractor for addressing these new conditions by the end of the year. we'll then probably need a couple months to negotiate that change order. so our goal is to have a finalized change order by march of 2014. i also mentioned in that last briefing that there are still

some major risk in that project. deescalation rated risk should expired by 2014. however foundation grouting won't go away until 2015. we have some of the borrowed site material, the quality of the material and whether it's adequate for the hard rock fill into enter natural -- internal filter of the new dam and that won't expire until 2017 and the natural occur asbestos. a little while to go on this project, certainly. construction of the ifrg ton tunnel is now scheduled to complete. i told you about the

second segment of the tunnel. the installation of the internal pipeline is to begin later in november. we are anticipating to complete that in february 2014. from there we'll need to grout the annular space and apply the mortar lining inside the internal pipe. all of that should be done by -- september 2014. on 2014 progress we will work with the water enterprise tenant -- contractor and the inspection of the tunnels. the inspection will take place of 2014-2015. it should be noted that we'll seek your approval for the schedule and budget year during the first quarter of 2014.

bay tunnel doing very well there. 91 percent complete. as i mentioned, we completed the installation of the interior pipelining in september. last work elements remaining in that project involve grounding of the space and mortar lining in the interior liner and the existing pipelines. all to be completed in july 2014. seismic upgrade of pipeline no. 3 and 4 is now 42 percent complete. this project is involved in a construction of a new seismically designed conduit using the standard cuts and cover method and the segment of the line crossing traces of the hayward fault is

being sized. we have 90 percent done with the cut section. a couple months ago i informed you that while we started the excavation that we found some traces of the hayward fault we are about to start the excavation that will complete their investigation on these previously unidentified features. we should have a report by urs by the end of december with a recommended fix. it could be minor, it could be significant. it's still really unclear how much of an impact these new features will have on our new design. once we have the recommended

fix. we will pass that along to the contractor who is going to need to submit a proposal and only then will we know the magnitude of the impact on schedule and budget. i anticipate that on that project, we'll have an idea of the impacts some time in the first few months of 2014. two more projects both in the peninsula. cfsa transmission upgrade. that project is now 80 percent done. we are currently, we have completed work on one added in each of the reservoirs. we are also well along on the work at the crystal springs pump station. by early or first month of 2014. we will have completed work on two outlet structures

in the san andreas and the pump station as well as the lower cover under the upper crystal springs dam. all that will be remaining is one outlet in the crystal springs reservoir which will be completed in 2014. what i would like to mentioned is that a lot of these facilities have the ability to move water. so operation has not been impacted significantly by some of the these project difficulties. still some remaining in relations to the under water work that has yet to be completed on the project. i have been very happy with some of the progress made on resolving some of the various outstanding changes that we had. there is definitely a positive momentum on that project now that has been

established in the recent few months. finally harry tracy treatment plant, that project is 62 percent complete. we are in a major critical shut down that will extend through december. by the time we are done with that shut down, the plant will have a brand new ozone system, the city personnel will have the ability to move back to their facility after being in a trailer for a large amount of time, storage tanks will be completed and the zip lining of the line will be completed as well. work on the large treated water reservoir is also on going. you should know that we have two major plants shut down remaining on this project and the first of those two will be initiated in march of 2014. we have made up

the time on that project and we are now tracking to complete as planned. i happy with that progress. so that completes my presentation. any questions? >> i would like to say it's been a pleasure to have you with us and get us out of the mes we are in. i'm trying to go back to 2000, the bond issue was 2002, but it was really rocky road. everything was upside down. so giving us the data of 06, things have been rather smooth since then. thank you so much for your service and devotions to the project and the we sip program and as you know, i have decided by

granddaughter is going to be an engineer to model after you. >> that's a great compliment. >> she wants to you subsidize the education. [ laughter ] . i just want to say a couple words of thanks and appreciation because i think it's remarkable what you have been able to accomplish here at the puc and the program and how your mind works with all the engineering challenges and opportunities. it's really been remarkable and i also want to echo commissioner moran's comments. i wish you well and hope you will visit. >> commissioner torres? >> julie, i wish you all the best and thank you for being part of a community of public service commitment that all of us share here in various degrees and forms. it's not easy to be a public serve --

servant. we'll have to wait a little while. but at the end of the day you truly are a role model for women and here in the city of san francisco and county. you are a really species. the better we can encourage everyone in the public. >> i want to comment on the experience i have had with julie. i would go into her office and she would talk about

i think an rfp, it was great talking to you because at that time you were just straight up about your intentions and it was just transparency and the project that you are working on and you went away for a while and when you came back, at that time it was tony irons and susan and we talked about hiring a director and there was the talk about the person we should put in place and i knew julie was the perfect fit and the person that would take complex ideas and report them simply so people can understand and gain the trust. i think shooes -- she's done such an outstanding job and made my life a lot easier. and the trust that everyone has in her she's going to take that where

she goes. if anything your stock is way up and you make sure that people pay for your experience that you have because you are just an asset. dan, you have some big shoes to follow. [ applause ] >> hopefully we'll be able to invite you back to a meeting very quickly. >> the last item i wanted to briefly talk about. i'm very excited we have the opportunity to convene a meeting in washington d.c. in october 24th and 25th. this was a meeting that we invited a lot of leader in the utilities agency and we wanted to talk about some focus high level concentration on things that keep us up at night

and we talked about innovation, technology, business practices and translating the value of our essential services and getting water on the national agenda and redefining the roles that we have in communities. basically i cohosted this along with george hawkins of dc water and tony parrot at the greater cincinnati sewer district. we had about 30 people attend. we invited 19 general managers and senior staff and talked about water and waste water conservancy. we ended up focusing on dialogue on work force development was one of the major components that most of our agencies faced. we

talked about succession planning and preparing, attracting and retaining the next technical as well as managerial roles and labor and contracting practices and invited jones about how we can get this message out to get some traction to the public and policy makers. it was interesting. he talked about coming into a room where there are organizations that have billions of dollars, employ a lot of folks. we should be excited about telling that message that we are actually a pipeline for not water, but also for jobs and really try to push that focus. it had a lot of great energy, a lot of the general managers who attended wanted to keep this momentum going. we are actually meeting as part of the -- in texas next

week but we would like to get together and get the gm's together and talk about our constituents and improve our business. that ends my report. >> can i ask, what is the next step for that process, group? >> one of the concerns that we are involved with a lot of associations. what we wanted to do is just without any other associations that we belong, we just want to come together and talk about what was important to us. as part of that session, we were able to invite those organizations to come in because we wanted to make sure that we talk about the things that were important to us. i think that was great. we were not worried about sponsor ships or anything like that. we were

able to really talk about an agenda. so we want to continue talking amongst each other and it was just a really outstanding session. so i think what's coming from that is, a lot of cities like los angeles, chicago was really interested in our community benefit. that's one of the things that they felt was important. we talked about doing outreach as you impact community and really involve them in how you can minimize impact because those are eventually rate payers that are going to vote on increases. so you take advantage of those opportunities and not just wait until you need them. you actually take care of them while you don't or not really impacting or when you impact them you need to take advantage of that opportunity. there was a lot of dialogue and a lot

shared and i think everybody is really excited about the coverage and hopefully narrowing it because it was so broad. >> okay. that concludes the general managers report. am i correct? we already had public comment on item 7 a. with respect to item 7bcd and f is there any public comment? hearing none, public comment is closed. >> we have one speaker. >> i just want to close off saying it's very exciting to see so much money is being involved with puc and you guys doing and wonderful job because the infrastructure of the city looks pretty good here. i am here to speak on an issue that your department has just put into your folds to out

migration. from what i understand the puc has taken over the out migration and call it the out migration efforts. the history that starts with mr. blackwell back in the redevelopment agency and when he left, thinks mess went shifted to the puc. i'm still ace and puc is still shifting this out to the out my -- migration. i'm 59 years old and i have kids and grand kids. my question is what is the budget line on this migration. i would also like to be partnerships with you all to do a summons in early february for black history month and involve all

the principles that are involved with the out migration. i have all the video tapes and i'm meeting with mr. miller and i'm very happy that you assigned him to it. the other thing is we would like to, see i understand that you hired him to work with the city and county as the liaison. i'm on the outside working with the black community organizations as the czar. i would like to be called the community regulator. the other things is we would like to put together a black agenda, a black debate to further discuss the organizations from the naacp to have a big summons in february at the library. i would like to talk to mr. miller or whoever is involved with that. so anyway, thank you for letting me speak now.

>> thank you. i'm going to ask that you only remember we start the meeting with general public comments so you will go there next time, but your points are well-taken. thank you. >> madam secretary? >> item 8 is a consent calendar. their considered to be routine by the commission and acted upon as a group. >> is there anyone who would like to separate an item? >> 8e. >> and 8 h. >> with respect to 8abcfg.

>> it's been moved. >> any discussion. >> i guess i will call for items 8abcfg. seeing none, public comment is closed. i will call for a vote, all in favor say, "aye". >> aye. >> 8 e. madam secretary. >> approve plans and specification in work contract. >> mr. president, my question on that goes to why we only had one bidder. i understand we did it twice. there was only one bidder the first time and only one and the same bidder the second time. i couldn't see in reading through this anything that made this work unusual. it

seems like the bread and butter stuff we do, why on earth only one? >> the first time we put it out to bid there were four bidders and only one of them actually had a qualified subcontractor do a lining the sewer. the other three did not. we had to rebid it and rebid it out and only the one with the pipeline did the bid. there was another bid but it came in late so it was not considered. >> so non-complying bids didn't decide to comply and compete? >> that's correct. however i should note that right now because of the paving program, there is a lot of sewer lines getting replaced in the city. there is a lot of work right now for a lot of people, we are getting less and less bidders bidding for our projects now. >> that's something to watch. that's a real concern if that becomes a common occurrence.

>> that's why we pay for this stuff. thank you for that explanation. i will move the item. >> okay. it's been moved. 8e, is there a second. >> second. >> any further discussion. >> i will call for public comment on 8 e. all in favor say, "aye". >> aye >> the motion carries. next item 8 h. >> too approve item 79. >> the reason i bring that up, it's not that much money is that we are collecting every month instead of every other month. it seems like quite an increase. >> this increase is because of

the frequency doubling and the rate being charged here has been flat since 2009 and it would be an extension of that rate since 2009 observing the double collections and allow our new request for quote in the oncoming year. we have made great progress to doing additional website work with for our customers and look forward to rolling that out over 2014 and are working on a campaign as well to increase online bill pay as well. so we would like to explore all of those things and with this extension it will allow us to do that in a very deliberate way. >> so this venue is still needed in china town? >> it's still needed at this time. >> my recollection was that this was originally part to be intended a citywide neighborhood city hall kind of

program where there would be a presence in each neighborhood of their government. and this is the only one that remains? >> i believe that is correct. so most of the online, most of the in person payments are done at our headquarters at 525 golden gate. >> any other parts of the city that seem to need that service? >> there is a list here as far as all the payments and, let me see, we have our 525, city hall we have dots printing and stationery and then we also do the online payments as well as mail payments. this is the only other physical location besides city hall besides the 525 golden gate. >> is this where there was a commissioner with a conflict of interest? >> i don't recall that in the last 5 years anyway.

>> a little local color. >> when did you join ? >> this will be year 6, 2008. >> yes, this goes back to 1999. >> i'm new. thank you. >> i will move this >> okay. it's been moved. this is 8 h. is there a second? >> second. >> i will call for public comment. seeing none, public comment is closed. all in favor say, "aye". >> motion passes. item 9.

>> this is your water rate study. the charter requires at least 5 years independent consultant be hired to review the books and review the cost of services. that's what we've done. here today is steve mcdonalds and -- frommen nearing. men men -- engineering if you can raise your hand. these talented individuals, if trisha can raise her hand. they are here to hear your comments firsthand. so not to put anybody on the spot, there is about 5-8 questions that will be helpful for you to weigh in

as i did in policy related items to tea up things when we come to you in march, we are presenting you ideas that you care most about for our customers as well as for the stewardship of the commission. so, big picture. what has been accomplished so far is that we have worked with koirls since last january and nearly complete the cost of work and we want to get your input there. big picture here is we'll go through objectives required by the charter, some background timeline and what the key policy drivers maybe that you would want to weigh in on and then give you a brief view of what you are going to be seeing. as part of the rate

study it allocates cost in our 10-year financial plan, our budget and all of our projections and will provide for you as policy makers as well as staff comparisons of all of these data xaert to all of our neighbors in the bay area and larger cities in california. by rate structure and design and looks at those best practices along the way to make sure that we are doing well by our rate payers and for our rate payers. the charter requirement is in back of 2002 and rate studies back in 2009 adopting the first 5-year rate package and this is a new time now because we are also looking at in the connections of this rate study, the new rate policy you adopted, the rate technology policy you adopted and